Part 6:
In order to protect themselves from the competition of Blue Cross, doctors came up with an alternative to affordable health care coverage. On one account, the American Medical Association (AMA) devised a set of guidelines where provisions were enforced to ensure voluntary health insurance that would stay under the watchful eye of the physicians. Doctors who wanted to charge different rates to different customers found these same guidelines also allowed Blue Cross/Blue Shield to operate as non-profits.
Physicians lobbied to ensure that those represented on the board of any Blue Cross plan were free to choose what plans they would respectfully choose. In 1939, the California Physicians' Service (CPS) acted as the first pre-payment plan created to cover Physician's services. These plans eventually became known as Blue Shield in 1946.
To be continued.
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